Glut that hurts

THE YEAR 2025 is ending with a glut that hurts.

The flooding of imported refined sugar in local markets since mid-September has caused misery among agrarian reform beneficiaries (ARBs) who ventured into small-scale sugar planting, as well as among hacienda laborers.

The reason is simple: the millgate price of sugar has dropped to ₱2,100 to ₱2,200 per 50-kilo sack, or ₱300 to ₱400 below the standard production cost of ₱2,500 per sack in the sugar industry.

As a result, many haciendas in Negros Occidental failed to release the full 13th-month pay of their workers. Some released only 50 percent, turning what should have been a joyful holiday season into a bleak one.

Worse, ARBs who dreamed of better incomes through sugar production ended up “luha-an” (tearful), as the price of their locally produced sugar failed to even cover planting, growing, and milling expenses.

Roland de la Cruz, president of the National Congress of Unions in the Sugar Industry of the Philippines (NACUSIP), expressed sympathy for both laborers and ARBs.

He described the current crisis as a “perfect storm” — one that industry stakeholders have been battling for the past four months.

‘CUT THE CRAP’

In recent media interviews, Sugar Regulatory Administration (SRA) chief Pablo Luis Azcona announced that the sugar import ban would be extended until December 2026.

Duh.

Such a pronouncement was too little, too late to appease the most vulnerable stakeholders in the sugar industry.

Azcona needs to cut the crap. He must acknowledge that Sugar Order No. 8 (SO8) is the very reason imported sugar flooded the Philippine market.

Because of this glut, millgate prices of locally produced sugar plunged to historic lows, dragging ARBs and hacienda laborers into financial distress — right in the middle of the holiday season.

Azcona’s import-ban announcement no longer holds water. What he needs to do instead is re-examine his math under SO8.

Sugar planters recommended the importation of only 150,000 metric tons (MT) of sugar.

But how much actually arrived?

424,000 MT.

That means 424,000 MT minus 150,000 MT equals a surplus of 274,000 MT — now flooding the market as glut.

And what happens next?

Locally produced sugar becomes “dehado” (at a disadvantage), resulting in “nubo presyo” (low prices).

To make matters worse, the sugar flooding hit the heart of the country — particularly Negros Occidental, the Sugar Bowl of the Philippines — in mid-September, barely two weeks before the official milling season began on October 1.

And the glut persists to this day.

‘COLD FISH’

The question now is this: Is Azcona detached from the suffering of fellow sugar planters, ARBs, and hacienda laborers?

From the outset, Azcona knew that whatever hullabaloo would erupt in the sugar industry, he would be the first to be blamed as SRA administrator.

That alone should have compelled him to follow the recommendation to import only 150,000 MT, not 424,000 MT of sugar.

So why didn’t he heed his fellow sugar planters?

Or is he listening to some other entities?

Can’t he feel the plight of hacienda laborers who received no 13th-month pay?

Can’t he feel the anguish of a “tapasero” (sugarcane cutter) or “kargador” (hauler) who has no money to buy even a loaf of bread and a bottle of peanut butter for his family on Media Noche?

Azcona must reflect on this reality — simple as that.

If he cannot, then there is no reason for him to remain as SRA administrator.

‘EGG ON THE FACE’

Amid the crisis, Azcona attempted to salvage the thin line separating his integrity from his duty.

But declaring an import-ban extension for another 16 months was pointless. Instead of calming tensions, it fueled the anger of industry stakeholders.

De la Cruz pointed out that such a move should have been done back in 2023 or 2024 to prevent the flooding of imported sugar.

In short, Azcona spun the issue wrongly.

Perhaps his publicist panicked and advised him to announce the extension, thinking it might appease the “growling stakeholders.”

Instead, the announcement backfired — leaving egg on his face as criticism poured in.

Clearly, the SRA administrator and his publicist need to learn how and when to issue statements that do not boomerang.

‘DANCE AROUND THE ISSUE’

Now, key players in the sugar industry are demanding the full truth behind SO8.

Consider this:

Negros Occidental 5th District congressman Dino Yulo is urging Azcona to act for the sake of ARBs and small sugar planters.

3rd District congressman Javi Benitez is pushing for a deeper probe into the crisis.

De la Cruz has warned of hauling Azcona before the Ombudsman over SO8.

All these have placed Azcona squarely under fire.

And true to the title of this piece — Glut that hurts — Azcona should now look in the mirror and ask himself:

Does it hurt me, too?

It should.

Because while the sugar glut has left laborers and ARBs cash-strapped, the damage to Azcona may run deeper — wounding his leadership, integrity, and credibility.

When people are left crying because of indecision or leadership without conviction, trust erodes.

And that is no small thing./PN

LEAVE A REPLY

Please enter your comment!
Please enter your name here